Stockholders, creditors, and private investors often need assurance that the financial statements accurately represent the true financial position of a company.
In compiling financial statements for a client, we present information that is the "representation of management" and expresses no opinion or assurance on the statements. Compilations don't require inquiries of management or analytical procedures. Instead, we rely on our knowledge of accounting principles and a general understanding of your business.
Banks often require compilations from an independent CPA as part of their lending covenants.
Most small businesses don't have a need for the statement of cashflows and the disclosures ordinarily included in financial statements prepared in accordance with Generally Accepted Accounting Principles, so we keep client cost down by excluding them. They can always be added for an additional charge if required by lenders or others.
